Investors are optimistic about the oil market outlook in 2025, with bullish bets reaching a four-month high.
On Tuesday, data from the Commodity Futures Trading Commission (CFTC) showed that for the week ending December 24, 2024, fund managers increased their net long positions in WTI crude oil by 21,694 contracts to 182,895 contracts, the highest level in four months.
Notably, during the reporting week, oil prices traded within a range of less than $3, indicating that the increase in bullish bets may stem from changes in long-term positioning rather than short-term price reactions.
This increase occurred after hedge funds significantly raised their bullish bets a week earlier, marking the largest increase in a year. Although the impending supply surplus poses pressure on the oil market in early 2025, investors are still preparing for upside risks. Key influencing factors include:
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Trump's imminent return to the White House, with his stance on major oil exporter Iran becoming an important variable for traders;
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Ongoing conflicts in Ukraine and the Middle East, with geopolitical risks still present;
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Analysis from Bridgeton Research indicates that algorithmic traders switched to net long positions in WTI and Brent crude oil earlier this month and have continued to expand these positions. This trend aligns with the actions of fund managers, reflecting market optimism regarding oil price movements in 2025

Although oversupply poses pressure on the oil market in 2025, investors are still preparing for upside risks, primarily influenced by Trump's stance on Iran after returning to the White House and the ongoing geopolitical risks

- Investors are optimistic about the oil market outlook for 2025, with bullish bets reaching a four-month high.  
- As of December 24, 2024, fund managers increased their net long positions in WTI crude oil by 21,694 contracts to 182,895, indicating a shift in long-term positioning despite short-term price stability.  
- Key factors influencing this sentiment include geopolitical risks from ongoing conflicts and the potential return of Trump to the White House, which could affect relations with major oil exporter Iran.

The most bullish oil prices in four months! Traders focus on "Trump vs Iran"